Vale's mega iron ore carrier allowed at China port after deals

SHANGHAI Oct 10 (Reuters) - A giant iron-ore freighter
owned by Vale SA was allowed to dock at a Chinese
port last week, Reuters data showed, the first since the
Brazilian miner signed deals with two of China's largest
shipping groups in what was seen as a thawing of relations.

Chinese ship owners have opposed access for Vale's
mega-ships of 400,000 deadweight tons, known as the Valemax,
saying they could worsen a shipping glut and steal market share.
In 2012, the Ministry of Transport banned the ships from China's
ports, citing safety concerns.

But last month, Vale signed deals with state-backed firms
China COSCO and China Merchants Energy
Shipping in a move that marked a breakthrough in the
lengthy standoff and prompted analysts to forecast that Valemax
ships would soon be docking in the world's top iron ore
consumer.

The mega-ship Shandong Da Ren docked at Dongjiakou port in
Qingdao, eastern China, on Oct. 2 at the start of a seven-day
national holiday, and left for Singapore on Oct. 4, according to
Reuters ship tracking data.

The ship, known as Vale Malaysia till the miner signed a
four-ship chartering deal with Chinese state-owned Shandong
Shipping Corporation last year, last docked at a Chinese port in
April 2013. That marked a Valemax's first entry since the 2012
Chinese ban though it was unclear why it had been allowed in.

China's Ministry of Transport and Vale China did not return
requests for comment when contacted by Reuters on Friday.

Vale's inability to dock its very large iron ore carriers of
at Chinese ports frustrated its attempts to reduce freight costs
and compete with Australian based-rivals such as BHP Billiton
and Rio Tinto, which are closer to China.
(Reporting by Brenda Goh; Editing by Himani Sarkar)